Soybeans slip after USDA confirms sales to China
CHICAGO: US soybean futures eased on Tuesday in a profit-taking setback from recent highs after new export purchases by China lifted the market to a 7-1/2-month peak late last week.
The U.S. Department of Agriculture confirmed nearly 3 million tonnes of U.S. soybean export sales on Tuesday, mostly to China, after high-level talks last week between the United States and China ended with a vow by Beijing to buy 5 million tonnes of U.S. soybeans.
Wheat and corn drifted in positioning ahead of the announcement of a backlog of crop reports on Friday by the U.S. Department of Agriculture (USDA) which were delayed by the partial U.S. government shutdown.
"The soybean sales were already baked in and now we're looking forward to any news in the crop report coming up on Friday. After that we're looking for what happens with the upcoming Trump-Xi meeting. It's a market that's just handcuffed right now," said Don Roose, president of U.S. Commodities.
Chicago Board of Trade (CBOT) March soybean futures were down 3/4 cent at $9.17-3/4 a bushel by 12:20 p.m. CST (1820 GMT), March corn was up 1-1/2 cents at $3.80-3/4 a bushel and CBOT March wheat fell 1/4 cent to $5.25-1/2 a bushel.
Hopes continue that progress is possible in talks to end the U.S.-China trade war which has hugely cut U.S. soybean exports to China.
The USDA on Friday will publish data delayed by the partial government shutdown including wheat sowings, U.S. and South American corn and soybean production, U.S. grain stocks and world crop season ending stocks.
Grain traders are also monitoring weather in South America following hot and dry conditions in parts of Brazil this season and overly wet weather in Argentina that have dented yield prospects. Weather conditions in both countries are improving, forecasters said.
Brazil's soy harvest in the second-largest producing state of Paraná is well ahead of last season, with limited damage to the fields from a drought in December, state agricultural research body Deral said on Tuesday.